CommerceHub Reports Drop-Ship Transaction Growth

Supply-on-Demand Platform Expands Supplier and Product Availability


ALBANY, NY--(Marketwire - April 8, 2008) - CommerceHub, the Supply-on-Demand platform for supply chain integration and fulfillment solutions, has announced that as of the end of first quarter 2008, the company had a 24% growth in purchase order transactions over the same period last year, despite an overall industry-wide decline in discretionary retail sales this year. PO transactions are the process through which e-tailers fulfill orders on the CommerceHub platform by drop-shipping directly from their suppliers to consumers.

"The transaction volume that our eCommerce partners have experienced utilizing our drop-ship fulfillment solution during the first quarter of 2008 has exceeded our expectations," said CommerceHub's CEO, Steve Hamlin, "and it continues to grow at an unprecedented pace."

In 2007, CommerceHub increased the number of drop-ship suppliers available on their Supply-on-Demand platform by 30%, and has seen an 81% increase in product SKUs being offered by merchants. The increased drop-ship product availability has enabled CommerceHub's merchant partners to quickly add and change product offerings to adjust to market trends without warehousing inventory.

The CommerceHub Supply-on-Demand platform provides virtual warehousing capability by enabling any supply-chain network to drop-ship products directly from the supplier to the customer, while maintaining the same degree of customer service, fulfillment performance and brand management as if they actually shipped the product from their own warehouse. CommerceHub provides a single connection for trading partners to electronically integrate with all their suppliers, distributors, manufacturers and carriers, regardless of individual technical capabilities or systems incompatibilities. eCommerce retailers use the Supply-on-Demand platform to dramatically increases product offerings; broaden markets and drive revenue without incurring inventory handling and warehousing costs.

About CommerceHub

CommerceHub is the industry's leading provider of fulfillment and integration solutions for retailers and wholesale distribution companies. With nearly a decade of experience working with Top 25 retailers, distribution supply chains and a wide array of major brand name suppliers, CommerceHub manages more than $4.5 billion in goods annually on behalf of such industry leaders as Costco, QVC, Staples, Circuit City, Meijer, drugstore.com, Ty's Toy Box, Kmart, Sears, Toys "R" Us, Walgreens, Dell, Toshiba, Sanyo, Minolta, Gateway and Little Tikes.

For information on the CommerceHub Supply-on-Demand platform, Universal Connection Hub and Drop Ship Master visit www.commercehub.com.

Contact Information: Contact: Donna Cooper CommerceHub 518-810-0700